August Monthly Market News

The Fraser Valley real estate market saw sales fall again in July due to continued interest rate hikes as the government struggles to bring inflation under control.
The weaker demand resulted in prices dropping for the fourth consecutive month, most notably for detached homes, which ended the month with an average sale price for South Surrey/White Rock of $1,948,320 and down 18 % since peaking at $2,402,318 in February. The Residential properties' average sale price in the same area is still up year-over-year by 14.2%. Our price point is now matching sale prices from October 2021. Interestingly enough, if we look at the stats since the start of the pandemic in January 2020, the average sale price is still up a whopping 33%.
I expect the prices to adjust further downwards as the interest rates continue to increase to bring inflation under control. It is all pandemic related, and unfortunately, we don't have any precedent for a pandemic together with the state the world is in today. However, from the many Real Estate professionals with whom I am constantly communicating, we anticipate that the prices will adjust until they balance with the interest rates. We will continue to see a steady rise to our current levels in approximately 5 years. 
We have had the lowest number of sales in the area since May 2020. The buyers realize that properties are overpriced and are simply not prepared to pay the listed prices. They are looking at their monthly mortgage costs and want to negotiate. One thing for sure is that change is always constant. 
"It is important to keep in mind that real estate is and always will be an asset with considerable upside over the long-term," said Fraser Valley Real Estate Board President, Sandra Benz. "As prices come down from the highs of recent months, there are opportunities for buyers who have been waiting to re-enter the market and shop for the right property."
What does that mean if you are thinking of selling? It is essential to be ahead of the market. For nearly 8 years, I have worked as an award-winning realtor in the White Rock-Surrey area, focusing on development and residential real estate. My passion lies in helping people see the market clearly. I continue to help families change their lives to help them live their dreams.
 Give me a call for a chat. I would love to hear from you!